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Associated Press
01-05-2025
- Business
- Associated Press
Pinnacle West Reports Lower 2025 First-Quarter Financial Results
PHOENIX--(BUSINESS WIRE)--May 1, 2025-- Pinnacle West Capital Corp. (NYSE: PNW) today reported a consolidated net loss attributable to common shareholders of $4.6 million, or a loss of $0.04 per diluted share of common stock, for the quarter ended March 31, 2025. This result compares with consolidated net income attributable to common shareholders of $16.9 million, or $0.15 per diluted share, for the same period in 2024. The results reflect a decrease of about $22 million, primarily the result of higher operations and maintenance expense; depreciation and amortization expense, mostly due to increased plant and intangible assets; lower pension and other benefit service cost credits; lower other income due to the gain on the sale of a former subsidiary recognized in the prior year; and higher interest charges. These negative factors were partially offset by the favorable impacts of new customer rates; a gain from a non-utility equity investment made by subsidiary El Dorado; lower income taxes due to lower pretax income and higher tax benefits related to employee benefits; higher transmission revenue; and higher revenue resulting from Arizona Public Service Co.'s (APS) Lost Fixed Cost Recovery (LFCR) adjustor mechanism. 'Financial results in the first quarter were in line with our expectations, especially given the power plant overhauls and maintenance work that we had built into our budget to ensure our system runs reliably during the upcoming summer months,' said Pinnacle West Chairman, President and Chief Executive Officer Ted Geisler. 'We remain optimistic that we will achieve our annual targets as customer and electricity sales growth remain robust, along with Arizona's overall economy. 'With Arizona's population growing faster than the national average, it's clear that people view Arizona as an attractive place to live and do business.' A Thriving, Growing Service Territory The total number of APS retail customers in the first quarter grew a robust 2.3%, while retail sales increased 2.1% quarter over quarter as Arizona's economy remains a diverse growth and investment hub. In fact, a recent study by the U.S. Census Bureau indicates Maricopa County (home to about 70% of APS's customers) had the third-largest numeric growth among U.S. counties. Only Harris County, Texas — where Houston is located — and Miami-Dade County, Fla., experienced larger growth. Further, according to a separate Commercial Cafe report, Phoenix remains the number one spot as the best-positioned industrial real estate market, ranking ahead of Orange County and the Inland Empire in California. Summer Reliability and Safety Preparations With temperatures in Arizona quickly heating up, employees have been focused on comprehensive summer preparedness designed to ensure safe and reliable power is delivered when the company's 1.4 million customers need it most to cool their homes and businesses. 'To serve our customers with top-tier reliability, we work year-round on operational preparedness, resource planning, procuring sufficient reserve margins, creating customer partnerships to manage peak demand, and maintaining a comprehensive fire mitigation program,' Geisler emphasized. APS crews continually conduct patrols – on foot, by vehicle and in the air – across a sprawling network of more than 40,000 miles of power lines, to protect and maintain a strong and resilient energy system. In addition, APS employees are nearing completion of a scheduled maintenance and refueling outage at Palo Verde Generating Station Unit 1. The three-unit nuclear plant – a primary source of clean electricity for the Southwest and one of the largest power producers in the U.S. – is critical to meeting summer demand across the Desert Southwest. With Arizona's hot summers, low rainfall and dry vegetation, the company is taking further action to support wildfire-prone communities by employing advanced risk modeling tools; expanding its Public Safety Power Shutoffs (PSPS) program to mitigate fire risks and help keep communities safe; and installing innovative fire- and weather-tracking technology on the grid. Among its newly adopted technology, APS has deployed artificial intelligence (AI) fire-sensing cameras to proactively search for early signs of wildfires, thereby enhancing the company's already vigorous wildfire mitigation program. These cameras alert APS fire mitigation experts and fire dispatch centers when smoke and heat traces are detected in targeted, high fire-risk areas. 'The new AI cameras function as powerful extra sets of eyes and are key to helping us deliver safe, reliable energy to all our customers,' said Geisler. 'When minutes matter, integration of this advanced detection technology improves firefighter rapid-response capabilities, thereby helping protect both critical infrastructure and surrounding communities.' Enhancing Customers' Experiences The company's focus on summer readiness extends to delivering an industry-leading customer experience. Customer touchpoints – including an interactive outage map and email and text alerts – are continually being enhanced ahead of Arizona's peak summer season. In conjunction with APS's 24/7 Customer Care Center, these tools will help customers stay better informed during any outages. Furthermore, APS customers are benefiting from an industry-leading call-center featuring fast response times and knowledgeable, courteous advisors; increased proactive email and text notifications; and an industry-leading digital experience through and the APS mobile app that helps customers stay informed and complete transactions, monitor energy consumption, select their optimal rate plan and efficiently manage their account. All the while, the company continues to emphasize employee learning, tools and resources to ensure all team members understand their individual and collective roles in customers' experiences and interactions with APS. Financial Outlook For 2025, the company continues to estimate its consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the first-quarter 2025 earnings presentation slides at Conference Call and Webcast Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at noon ET (9 a.m. Arizona time) today, May 1. The webcast can be accessed at and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 554993 . A replay of the call also will be available at or by telephone until 11:59 p.m. ET, Thursday, May 8, 2025, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 52252. General Information Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of more than $27 billion, about 6,500 megawatts of generating capacity and approximately 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West's operating statistics and earnings, please visit FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as 'estimate,' 'predict,' 'may,' 'believe,' 'plan,' 'expect,' 'require,' 'intend,' 'assume,' 'project,' 'anticipate,' 'goal,' 'seek,' 'strategy,' 'likely,' 'should,' 'will,' 'could,' and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. View source version on CONTACT: Media Contact: Alan Bunnell (602) 250-3376Analyst Contact: Amanda Ho (602) 250-3334Website: KEYWORD: UNITED STATES NORTH AMERICA ARIZONA INDUSTRY KEYWORD: UTILITIES ENERGY SOURCE: Pinnacle West Capital Corp. Copyright Business Wire 2025. PUB: 05/01/2025 08:40 AM/DISC: 05/01/2025 08:39 AM
Reuters
25-02-2025
- Business
- Reuters
Pinnacle West quarterly revenue climbs on higher rates
Feb 25 (Reuters) - Pinnacle West Capital Corp (PNW.N), opens new tab reported a rise in fourth-quarter revenue on Tuesday, as the utility got a boost from higher rates and more customer additions. The company's largest subsidiary, APS, which provides electric services to about 1.4 million customers in Arizona, saw a 2.1% rise in customer growth for the whole year, and expects average annual growth in the range of 1.5% to 2.5% through 2027. Its rate case also helped its revenue, which is a process used to establish the amount that customers pay for electricity, natural gas, private water and steam services provided by regulated utilities. Revenues came in at $1.09 billion for the quarter, beating analysts' estimate of $1.04 billion, as per data compiled by LSEG. The utility expects electricity sales to increase between 4% and 6% annually over the next three years, amid record-high U.S. power consumption due to increased electrification and data center expansion. "A dramatic increase in commercial and industrial customers in our service territory - including new semiconductor manufacturing plants and expanding data center operations - is leading to incredible economic growth and triggering a historic wave of demand of electricity in our state," said APS President Ted Geisler. APS expects to add 9,805 megawatts of renewable power, battery storage and natural gas to the grid between 2025 and 2028 to meet the oncoming demand. However, the Phoenix, Arizona-based utility said net loss attributable to common shareholders widened to $6.8 million for the quarter ended December 31, from a loss of $23,000 a year earlier. This was in part due to total expenses rising 10% to $1.01 billion from $917 million, while total interest expenses also rose 9.6% from the same quarter last year.
Associated Press
25-02-2025
- Business
- Associated Press
Pinnacle West Reports 2024 Full-Year and Fourth-Quarter Results
Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $608.8 million, or $5.24 per diluted share, for full-year 2024. This result compares with net income of $501.6 million, or $4.41 per diluted share, in 2023. For the quarter ended Dec. 31, 2024, Pinnacle West reported a consolidated net loss attributable to common shareholders of $6.8 million, or a loss of $0.06 per diluted share, compared with a net loss of $23,000, or $0.00 per diluted share, for the same period in 2023. The higher 2024 full-year results reflect an increase of about $107 million, primarily as a result of the impacts of new customer rates, increased customer usage and growth, the effects of weather, and higher revenue resulting from Arizona Public Service Co.'s (APS) Lost Fixed Cost Recovery (LFCR) adjustor mechanism and a surcharge resulting from the outcome of the utility's 2019 Rate Case appeal. These positive factors were partially offset by higher operations and maintenance expense, higher depreciation and amortization expense mostly due to increased plant and intangible assets, higher interest charges, net of AFUDC, higher income taxes and lower transmission revenues. 'Our employees once again did an excellent job running and maintaining the electric grid and ensuring that our 1.4 million customers received the reliable electrical service they expect from us,' said Pinnacle West Chairman, President and CEO Jeff Guldner. 'Our strong year-end earnings not only reflect this outstanding operational performance, but the results are consistent with a fast-growing service territory and us making the substantial infrastructure investments needed to meet the energy requirements of all our customers, now and in the future.' Reliability for a Growing State Reliability remains at the core of the company's customer service and drives plans to continue providing a balanced energy portfolio delivering power at reasonable rates. 'Our customer base, which for decades leaned heavily residential, is now more diversified than ever before,' APS President Ted Geisler said. 'A dramatic increase in commercial and industrial customers in our service territory – including new semiconductor manufacturing plants and expanding data center operations – is leading to incredible economic growth and triggering a historic wave of demand for electricity in our state.' APS, the company's principal subsidiary, experienced customer growth of 2.1% in 2024 and anticipates projected average annual growth in the range of 1.5% to 2.5% through 2027. Not surprisingly, these changes are driving a significant increase in energy consumption. APS also experienced weather-normalized, year-over-year retail electricity sales growth of 5.7% in 2024. Future sales are expected to increase between 4% and 6% annually over the next three years due in large part to the expected additions of several large data centers and new large manufacturing facilities. To prioritize reliability and meet requirements of this substantial growth, APS expects to add 9,805 megawatts (MW) of renewable power, battery storage and natural gas to the grid between 2025 and 2028 – more than 90% of which will be carbon-free. Some expansion highlights include: Power purchase agreements that are expected to add 3,321 MW of solar power along with 168 MW from the APS-owned Ironwood Solar Plant, currently under construction in Yuma County. At the Agave Solar Plant in Maricopa County, construction is under way on 150 MW of battery storage that will deliver solar energy to customers after sunset. Power purchase agreements for an anticipated 5,087 MW of battery energy storage that grid operators can release during evening hours when customer demand is greatest. 500 MW of additional wind power in northern Arizona's Navajo County; and Expansion of the company's existing Sundance and Redhawk natural gas-fired power plants. These additions are expected to deliver a combined 487 MW, providing much-needed energy during peak consumption hours. Just as important, they provide a critical complement to the large quantities of solar and battery energy storage we're adding to our system. Additionally, excellent performance at the company's generating facilities continues to benefit customers and the company's bottom line. For the 16th consecutive year – and 20th overall – Palo Verde Generating Station 's three nuclear units exceeded 30 million MWh of net generation and achieved a capacity factor of 93.7%. Importantly, the plant remains a cornerstone of APS's aspirational goal to deliver 100% clean, carbon-free energy by 2050 and a nearer-term target to achieve a resource mix that is 65% clean by 2030. 'Our employees remain focused on creating value for customers and shareholders, including consistently working to minimize our costs, while maintaining reliable electric service and improving customer satisfaction. As a result, we are well-positioned to have a solid 2025,' Geisler concluded. Staying Focused on Customer Satisfaction In furtherance of a customer-centric culture, APS's focus remains on its customers and the communities it serves. This past year, the company rolled out a newly designed customer bill with the aim of increasing personalization and helping customers better understand their energy use and find ways to save. The bill was developed with direct input from customers. APS also increased its energy support and crisis bill assistance; maintained a summer moratorium on disconnects for past-due bills; assisted customers with payment arrangements; and partnered with more than 100 local non-profit and community agencies to connect the state's most vulnerable populations with helpful resources. These and other company-wide efforts helped provide a more frictionless customer experience that was recognized by APS customers, as measured by J.D. Power. For 2024, APS ranked at the top of the second quartile for large investor-owned utilities for both business and residential customers, with the residential results being APS's highest rank and placement since 2016. In fact, this past year, residential customers ranked APS at or near the top of its peer set for Phone Customer Care, Power Quality & Reliability, Billing & Payment and Corporate Citizenship. Financial Outlook For 2025, the Company continues to estimate its consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the year-end/fourth-quarter 2024 earnings presentation slides at Conference Call and Webcast Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the Company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at 11 a.m. ET (9 a.m. Arizona time) today, Feb. 25. The webcast can be accessed at and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 685021 . A replay of the call also will be available at or by telephone until 11:59 p.m. ET, Tuesday, March 4, 2025, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 51904. General Information Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of more than $26 billion, about 6,500 megawatts of generating capacity and approximately 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as 'estimate,' 'predict,' 'may,' 'believe,' 'plan,' 'expect,' 'require,' 'intend,' 'assume,' 'project,' 'anticipate,' 'goal,' 'seek,' 'strategy,' 'likely,' 'should,' 'will,' 'could,' and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: uncertainties associated with the current and future economic environment, including economic growth rates, labor market conditions, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects; current and future economic conditions in Arizona, such as the housing market and overall business and regulatory environment; our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events or similar occurrences; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer, and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments, and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment; the ability of APS to meet renewable energy and energy efficiency mandates and recover related costs; the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition, and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; the development of new technologies which may affect electric sales or delivery, including as a result of delays in the development and application of new technologies; the cost of debt, including increased cost as a result of rising interest rates, and equity capital and our ability to access capital markets when required; environmental, economic, and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trust, captive insurance cell, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facilities and system conditions and operating costs; our ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders. These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. PINNACLE WEST CAPITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (dollars and shares in thousands, except per share amounts) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2024 2023 2024 2023 Operating Revenues $ 1,095,408 $ 991,574 $ 5,124,915 $ 4,695,991 Operating Expenses Fuel and purchased power 396,148 375,879 1,822,566 1,792,657 Operations and maintenance 327,251 281,388 1,165,156 1,058,725 Depreciation and amortization 230,585 203,598 895,346 794,043 Taxes other than income taxes 56,803 56,064 227,395 224,013 Other expenses 83 265 2,389 1,913 Total 1,010,870 917,194 4,112,852 3,871,351 Operating Income 84,538 74,380 1,012,063 824,640 Other Income (Deductions) Allowance for equity funds used during construction 9,830 13,047 38,620 53,118 Pension and other postretirement non-service credits - net 12,237 10,135 48,870 40,648 Other income 5,380 5,242 48,614 33,666 Other expense (19,556 ) (9,140 ) (34,136 ) (25,056 ) Total 7,891 19,284 101,968 102,376 Interest Expense Interest charges 107,152 96,027 425,742 374,887 Allowance for borrowed funds used during construction (12,192 ) (9,433 ) (48,270 ) (43,564 ) Total 94,960 86,594 377,472 331,323 Income (Loss) Before Income Taxes (2,531 ) 7,070 736,559 595,693 Income Taxes (10 ) 2,787 110,529 76,912 Net Income (Loss) (2,521 ) 4,283 626,030 518,781 Less: Net income attributable to noncontrolling interests 4,306 4,306 17,224 17,224 Net Income (Loss) Attributable To Common Shareholders $ (6,827 ) $ (23 ) $ 608,806 $ 501,557 Weighted-Average Common Shares Outstanding - Basic 114,337 113,534 113,846 113,442 Weighted-Average Common Shares Outstanding - Diluted 114,337 113,534 116,232 113,804 Earnings Per Weighted-Average Common Share Outstanding Net income (loss) attributable to common shareholders - basic $ (0.06 ) $ - $ 5.35 $ 4.42 Net income (loss) attributable to common shareholders - diluted $ (0.06 ) $ - $ 5.24 $ 4.41 View source version on Analyst Contact: Amanda Ho (602) 250-3334 INDUSTRY KEYWORD: ENERGY OTHER ENERGY UTILITIES SOURCE: Pinnacle West Capital Corp. Copyright Business Wire 2025. PUB: 02/25/2025 08:40 AM/DISC: 02/25/2025 08:40 AM
Yahoo
05-02-2025
- Business
- Yahoo
Arizona Utilities Announce Effort to Add More In-State Nuclear Power
Arizona's three major electric power utilities said they will collaborate to explore adding more nuclear power generation in the state, possibly placing small modular reactors (SMRs) or building large reactor projects at the locations of retiring coal-fired power plants. Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP) on Feb. 5 in a news release wrote that they have been 'monitoring emerging nuclear technologies and have a shared interest in evaluating their potential' to provide more electricity to meet the growing demand for power across the state. Officials with Phoenix-headquartered APS said their utility will lead the effort, working with TEP and SRP 'to assess a wide range of possible locations,' including at some of the several closed or soon-to-retire coal-fired power stations in the state. Many U.S. utilities have been adding new generation resources, both thermal and renewable, at closed power plant sites in order to take advantage of existing transmission lines and other infrastructure. Arizona has one operating nuclear power plant, the Palo Verde Generating Station, located about 50 miles west of Phoenix. Palo Verde—which won a POWER Top Plant Award in 2015—has three pressurized water reactors, and a total generation capacity of about 4 GW. It is the only large nuclear power plant in the world not located near a large body of water, receiving its water for cooling from wastewater and well water. The nuclear power station for years was the largest in terms of capacity in the U.S., and now ranks second behind the four-unit, 4.5-GW Plant Vogtle in Georgia, which added two new units—each with about 1,100 MW of generating capacity—over the past two years. 'Energy demand in Arizona is increasing rapidly,' said Ted Geisler, president of APS. 'To ensure a reliable and affordable electric supply for our customers, we are committed to maintaining a diverse energy mix. While new nuclear generation would take more than a decade to develop, the planning and exploration of options must begin now. We are partnering with neighboring utilities to assess the feasibility of new nuclear generation, alongside other resources, to meet the state's growing energy needs.' [caption id="attachment_86142" align="alignnone" width="640"] The Palo Verde nuclear plant in Arizona has three pressurized water reactors, with a total of about 4 GW of generation capacity. It is the second-largest nuclear power plant in terms of capacity in the U.S. The facility's three reactors came online between 1986 and 1988. Source: Arizona Public Service[/caption] APS in 2020 said the utility would strive to be carbon-free by 2050. The company was among those with an ownership stake in the 2,250-MW coal-fired Navajo Generating Station near Page, Arizona, that was closed in 2019. The plant was the largest coal-fired facility in the southwestern U.S. Jim Pratt, general manager and CEO of Tempe-based SRP, said, 'SRP is exploring all options to meet the growing energy needs of the Phoenix metropolitan area affordably, reliably and sustainably. We appreciate the collaboration with our neighboring utilities to help determine the role new nuclear generation could play in powering Arizona's future.' Officials on Wednesday said siting work for additional nuclear would consider SMRs in addition to larger, traditional reactors. SMRs are reactors generally with 300 MW or less of generation capacity. 'New nuclear generation could provide Arizona with reliable, around-the-clock carbon-free energy to power economic growth while helping us make progress toward a clean energy future,' said Susan Gray, TEP president and CEO. 'We know the development timeline would be long, so it makes sense for our state's energy providers to begin this preliminary evaluation as soon as possible.' The utilities on Wednesday said they have applied for a grant from the U.S. Department of Energy (DOE) to begin preliminary exploration of at least one potential site. The application was submitted under the DOE's Office of Clean Energy Demonstrations & Office of Nuclear Energy's Generation III+ Small Modular Reactor program. The grant if approved would support a three-year site selection process, and also potential preparation of an early site permit application to the U.S. Nuclear Regulatory Commission. The utilities said the grant application is a first step in their collaborative effort, and said a preferred site could be chosen 'in the late 2020s, at the earliest, potentially enabling additional nuclear to be in operation in the early 2040s.' APS serves about 1.4 million homes and businesses in 11 of Arizona's 15 counties, and is the owner and operator of the Palo Verde Generating Station. SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers. TEP serves more than 450,000 electric customers in Southern Arizona. TEP and its Tucson-based parent company, UNS Energy Corp., are subsidiaries of Fortis Inc., a North American regulated electric and gas utility industry. —Darrell Proctor is a senior editor for POWER.
